Thursday, May 3, 2012

Thumbs up for Woodside after Browse sale

Thumbs up for Woodside after Browse sale:
Some analysts speculated it was now more likely the Browse gas would not be processed at a new $30 billion-plus hub at the controversial James Price Point north of Broome on the Kimberley Coast, but would be piped 900 kilometres south to the existing North West Shelf plant at Karratha, which is split equally by the same six partners and which could run out of gas around the end of this decade.

RBC Capital Markets analyst Andrew Williams said the Browse joint venture looked ''exactly like the North West Shelf'' and the MIMI deal would shift the weighting away from a greenfields and towards a brownfields development option, which was ''always going to be cheaper''.

The West Australian Premier, Colin Barnett, said the deal was a ''vote of confidence in James Price Point, and progress of the Browse LNG project''.

A Woodside spokeswoman said James Price Point remained the base case for the Browse development, which was well into a front-end engineering process to which partners had committed $1.25 billion.

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